This Statement of Administration Policy provides the Administration's views
on the Department of Transportation and Related Agencies Appropriations
Bill, FY 1999, as reported by the House Appropriations Committee. Your
consideration of the Administration's views would be appreciated.

The Administration appreciates efforts by the Committee to accommodate
certain of the President's priorities within the 302(b) allocation such as
funding for Amtrak. However, the allocation is simply insufficient to make
the necessary investments in programs funded by this bill. As a result, a
variety of critical programs are under-funded. The only way to achieve the
appropriate investment level is to offset discretionary spending by using
savings in other areas. The President's FY 1999 Budget proposes levels of
discretionary spending for FY 1999 that conform to the Bipartisan Budget
Agreement by making savings in mandatory and other programs available to
help finance this spending. In the Transportation Equity Act, Congress --
on a broad, bipartisan basis -- took similar action in approving funding
for surface transportation programs together with mandatory offsets. The
Administration urges the Congress to consider such mandatory proposals for
other priority discretionary programs, including those funded through this
bill.

The Administration is concerned that the Committee bill could seriously
compromise the Coast Guard's and the Federal Aviation Administration's
(FAA's) operations and modernization projects, compromise highway safety,
and harm other important programs. The House could partially accommodate
the funding increases recommended below by adhering more closely to the
President's request for the Airport Grants program, High Speed Rail, Coast
Guard Alteration of Bridges, and other programs. The bill also includes a
number of objectionable language provisions. The Administration's concerns
are discussed below.

Essential Operations

The Administration strongly urges the House to fully fund the request for
Coast Guard and FAA operations. We ask that the Committee restore the $72
million reduction to Coast Guard Operating Expenses and to eliminate the
Committee's direction to reallocate funds among programs. The Committee
mark would force the Coast Guard to lay up certain cutters and aircraft and
decommission one of the Nation's three polar icebreakers, which would,
among other effects, compromise the integrity of our Exclusive Economic
Zone and leave critically depleted fish stocks under-protected.

Likewise, we ask the House to restore the $56 million reduction to FAA
Operations. These funds are necessary to ensure that the FAA can hire the
safety inspectors and security personnel needed to meet the demands from
increased air travel.

Coast Guard and FAA Modernization

The Administration urges the House to fully fund the request for Coast
Guard and FAA modernization to ensure that the infrastructure necessary to
fulfill their missions in the future is available. The Administration
urges the House to restore the $54 million reduction to the request for
Coast Guard capital replacement funding. This funding is necessary to
complete projects that will reduce the Coast Guard's future operating
costs, improve mission performance, and provide adequate facilities and
housing for Coast Guard personnel. We are particularly concerned about
large cuts to the seagoing buoy tender replacement, the Deepwater
Capability Replacement Analysis, and family housing. These cuts ultimately
would adversely impact all Coast Guard activities, including drug law
enforcement. In addition, we urge the House to fully fund the President's
request for the Nationwide Differential Global Positioning System and for
adding a second civil signal to the Global Positioning System.

The Administration urges the House to provide an additional $130 million
for the FAA Facilities and Equipment account. Funding at any lower level
could delay National Airspace System Modernization. In particular, full
funding is required for the Host Computer replacement and other Year 2000
conversion activities. The Administration objects to the elimination of
funding for the Flight 2000 program. This program is a key element of the
FAA's plans to make a transition to a more efficient, user involved,
satellite-based air traffic control system to meet the air traffic needs of
the next century.

Amtrak

The Administration appreciates the Committee's support for Amtrak funding.
We urge the House to allow Amtrak to invest these capital funds flexibly,
as provided in the Senate bill and as presently done by Federal Transit
Administration grantees. In addition, the requirement that the House and
Senate Appropriations Committees approve a Capital plan for Amtrak
constitutes a legislative veto. The Administration will interpret this
provision to require notification only, since any other interpretation
would contradict the Supreme Court ruling in INS vs. Chadha.

National Highway Traffic Safety Administration

To protect the safety of automobile travelers adequately, the
Administration asks that the House work with the authorizing committees and
provide an additional $12 million for high-priority National Highway
Traffic Safety Administration programs. These vehicle safety and consumer
information activities are essential to provide consumers with up-to-date
safety information, to conduct critical research on advanced air bag
systems and the biomechanics of injury, and to develop improved crash test
dummies.

Access-to-Jobs

The Administration requests that the House provide an additional $50
million to fully fund the President's request of $100 million for the
Access-to-Jobs program. This program is a critical component of the
Administration's welfare reform effort. The additional resources are
essential to helping more individuals in communities around the country
make a successful transition from welfare to work.

Office of the Secretary

The Administration urges the House to provide the President's requested $62
million for salaries and expenses of the Office of the Secretary and to
delete the Committee's recommended new account structure and limitation on
political appointees. These adjustments to the Committee bill are
necessary to avoid a reduction-in-force and to allow the Secretary to
manage the Department effectively.

Earmarks

The Committee has earmarked almost 300 transit projects, as well as many
airport, Intelligent Transportation System, and rail projects. Consistent
with the Administration's objection to earmarks in TEA-21, the
Administration believes that funds should not be directed to projects that
cannot meet established selection criteria.

Language Provisions

The Administration requests that the House delete the provisions in both
the Coast Guard and FAA operating expenses language that would prohibit the
Coast Guard and the FAA from evaluating options for collecting fees for
their services. User fees may be a critical means in the future for
ensuring that the Coast Guard and the FAA have adequate resources to meet
their operating and capital needs without significantly reducing other
vital transportation programs.

The Administration strongly objects to the Committee prohibition of any
future changes to automobile fuel economy (CAFE) standards. This
significant policy issue should be addressed analytically through the
process in place under Federal law and not preemptively settled through the
appropriations process.

Finally, the Administration is pleased that the Committee recognizes the
need to review the Coast Guard's roles and missions but objects to the
Committee's proposed blue-ribbon panel. This proposal would add
significant administrative and procedural requirements to the process,
delay the Deepwater contract by at least a year, and be more costly than
the Administration's proposed advisory council. The advisory council would
provide an objective, third-party assessment of the Coast Guard's roles and
missions in a time frame consistent with the planned Deepwater procurement.